Reference no: EM132659428

Question 1. Maximisation of owners' wealth

a. uses a short-term view.

b. fails to consider the time value of money.

c. takes risk into consideration.

d. relies on accounting numbers.

e. None of the above

Question 2. Corporate social responsibility means that the firm has responsibilities in relation to objectives and people apart from the owners. Included as other stakeholders are:

a. regulators.

b. customers.

c. general public.

d. all of the above.

e. None of the above

Question 3. If the income tax rate for companies is 30%, a shareholder who receives fully-franked dividends of $210 receives a franking credit of.

a. $63.00

b. $90.00

c. 584.00

d. $147.00

e. None of the above

Question 4. Jim earns a salary of $60,000 and has legitimate deductions, mainly donations, of $1.000. He has investments and receives $5,600 in fully franked dividends. By how much does his taxable income increase through receipt of the franking credits? The income tax rate for companies is 30%.

a. $19,380

b. $2,400

C. $1,680

d. $5,600

e. None of the above